Here's What Analysts Are Forecasting For Heron Therapeutics, Inc. (NASDAQ:HRTX) After Its Full-Year Results

Heron Therapeutics, Inc. (NASDAQ:HRTX) investors will be delighted, with the company turning in some strong numbers with its latest results. Results overall were credible, with revenues arriving 2.8% better than analyst forecasts at US$127m. Higher revenues also resulted in lower statutory losses, which were US$0.80 per share, some 2.8% smaller than the analysts expected. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

Check out our latest analysis for Heron Therapeutics

Taking into account the latest results, the most recent consensus for Heron Therapeutics from three analysts is for revenues of US$145.9m in 2024. If met, it would imply a solid 15% increase on its revenue over the past 12 months. Losses are predicted to fall substantially, shrinking 71% to US$0.21. Yet prior to the latest earnings, the analysts had been forecasting revenues of US$140.9m and losses of US$0.43 per share in 2024. There's been a pretty noticeable increase in sentiment, with the analysts upgrading revenues and making a very favorable reduction to loss per share in particular.

Despite these upgrades,the analysts have not made any major changes to their price target of US$7.00, implying that their latest estimates don't have a long term impact on what they think the stock is worth. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. There are some variant perceptions on Heron Therapeutics, with the most bullish analyst valuing it at US$9.00 and the most bearish at US$5.00 per share. Analysts definitely have varying views on the business, but the spread of estimates is not wide enough in our view to suggest that extreme outcomes could await Heron Therapeutics shareholders.

Of course, another way to look at these forecasts is to place them into context against the industry itself. One thing stands out from these estimates, which is that Heron Therapeutics is forecast to grow faster in the future than it has in the past, with revenues expected to display 15% annualised growth until the end of 2024. If achieved, this would be a much better result than the 0.2% annual decline over the past five years. Compare this against analyst estimates for the broader industry, which suggest that (in aggregate) industry revenues are expected to grow 18% annually. So while Heron Therapeutics' revenues are expected to improve, it seems that it is expected to grow at about the same rate as the overall industry.

The Bottom Line

The most important thing to take away is that the analysts reconfirmed their loss per share estimates for next year. They also upgraded their revenue forecasts, although the latest estimates suggest that Heron Therapeutics will grow in line with the overall industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

With that in mind, we wouldn't be too quick to come to a conclusion on Heron Therapeutics. Long-term earnings power is much more important than next year's profits. At Simply Wall St, we have a full range of analyst estimates for Heron Therapeutics going out to 2026, and you can see them free on our platform here..

That said, it's still necessary to consider the ever-present spectre of investment risk. We've identified 3 warning signs with Heron Therapeutics (at least 1 which is potentially serious) , and understanding them should be part of your investment process.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.